Originally published on: December 05, 2024
Anchorage Digital has achieved a significant milestone by becoming the first federally chartered bank in the United States to support liquid Ether (ETH) staking, as announced on Dec. 5.
The cryptocurrency bank has integrated support for Liquid Collective’s Liquid Staked ETH (LsETH), a liquid staking token (LST) that represents ETH staked on the Ethereum blockchain, Anchorage Digital revealed.
This groundbreaking move opens up opportunities for US institutions, including venture capital (VC) firms, wealth managers, and blockchain protocols, to directly access liquid staking services through their Anchorage Digital accounts.
“Anchorage Digital Bank NA is now leading the way as the first US-regulated bank, chartered by the Options Clearing Corporation, to enable participation in liquid staking,” Anchorage Digital proudly stated.
As the demand for institutional staking solutions continues to rise, with ETF sponsors eagerly awaiting the potential approval of staking in US ETH ETFs, this development marks a significant step forward in the crypto finance landscape.
According to StakingRewards.com, staking on Ethereum offers stakers an annual percentage return (APR) of approximately 3.5% in ETH as of Dec. 5, making it an attractive option for investors looking to maximize their yields.
Liquid Collective, a leading player in the staking space, places a strong emphasis on regulatory compliance and cybersecurity. The protocol enforces mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, ensuring a secure and compliant staking experience for all participants.
With over $70 billion in total value locked (TVL), Liquid Staking Tokens (LSTs) have seen remarkable growth in popularity. The most prominent player in this space, Lido, boasts nearly $40 billion in TVL, showcasing the immense potential of liquid staking as a financial tool.
Liquid Collective, although smaller in comparison with around $430 million in TVL, plays a vital role in facilitating institutional staking activities within the crypto ecosystem.
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